How to Invest in Apple
Interested in investing in Apple? Learn how to do it with as little as $1.
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J.P. Morgan Self-Directed Investing - Get Up to $700
- Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.
- $700 when you fund with $250,000 or more
- $325 when you fund with $100,000-$249,999
- $150 when you fund with $25,000-$99,999
- $50 when you fund with $5,000-$24,999
- Get unlimited commission-free online stock, ETF, fixed income, and options trades when you open an account.
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- Our powerful tools and resources are built to help you take control of your investments.
INVESTMENT AND INSURANCE PRODUCTS ARE:
If you're looking for a reliable and successful technology company to invest in, Apple might be a great choice. They've been around since 1977 and have continually dominated the market. Plus, they offer profitable dividends to their investors.
Here's a step-by-step guide to how to buy Apple stock. We'll also discuss some factors to consider before investing in a company.
Is Apple on the stock market?
Yes, Apple is publicly traded on NASDAQ with the ticker symbol AAPL. It went public on NASDAQ on December 12, 1980.
Apple's all-time high stock closing price was $180.68 on January 03, 2022.
Now, here's how you can buy Apple stock.
How to Buy Apple Stock
You can buy Apple stock using any brokerage or trading app. There are no special qualifications needed.
20 Free Fractional Shares
Open a new Webull individual brokerage account. Make a single initial deposit of $500 - $1,999.99 during the promotional period to get 20 fractional shares, each valued between $3 - $3,000. Maintain a balance of $500 - $1,999.99 in the account for 30 days or more. Terms and conditions apply.
All Ages - Banking and Invest in One App
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1. Create an Account with a Brokerage
Before you can start investing in Apple, you will need to create an account with a brokerage firm or trading app. You can visit the brokerage's website or app and follow the instructions there to set up your account.
Typically, you'll need to provide:
- Your name
- Social Security number
- Address, phone number, and email
- Date of birth
You may also need to provide a copy of your driver's license or passport to verify your identification.
Don't have a ton of money to invest? Look for a brokerage that supports fractional shares. This means you can purchase just a tiny piece if you don't have enough money for a full share. This lets you to still invest in Apple even if you only have $10.
Deposit $100 and Get $10 from eToro USA LLC
- Sign up for an eToro account
- Deposit $100
20 Free Fractional Shares
Open a new Webull individual brokerage account. Make a single initial deposit of $500 - $1,999.99 during the promotional period to get 20 fractional shares, each valued between $3 - $3,000. Maintain a balance of $500 - $1,999.99 in the account for 30 days or more. Terms and conditions apply.
- Taxable: A general-purpose investment account
- Joint: An account shared between two individuals
- Retirement (includes Traditional and Roth IRA)
- 529 College Savings
- Custodial: An account set up for a minor
Keep reading for our top recommended brokers to buy Apple stock.
2. Fund Your Account
Once your account is created, you will need to fund it to start trading. Just link it to your bank account so you can transfer money. Depending on the brokerage, you may need to deposit a minimum amount to start trading.
Be sure to read through the terms and conditions of the platform carefully before making any investments.
Now, you can start investing in Apple stock.
3. Search for Apple (AAPL)
Once you've funded your account and are ready to buy, search for Apple stock using their ticker symbol 'AAPL'.
The company should appear, along with Apple's other relevant data, such as current stock price and daily average volume.
Click on the company listing for more detailed information, including news updates and analyst ratings. It's smart to research the company and consider any risks before investing.
4.Decide How Much You Want to Buy
The next step is deciding how much Apple stock you want to buy. Most platforms will let you enter how many shares or the exact dollar amount you want to buy.
For example, if the investing app allows for fractional shares, you can say that you want to buy $50 worth of AAPL (instead of full shares).
After entering the details, you are now ready to place your order.
5. Place your order
Once you have entered all the information, review it one last time and click 'place order' to complete your purchase of Apple stock. Your order will be processed in a few minutes, and you will receive a confirmation when it has gone through.
After that, you can view your holdings in your account portfolio and track their performance over time.
- Market order: Execute the transaction now at the current market price.
- Limit order: Set a specific price at which you wish to buy. This gives investors more control. But if the stock never hits your price, the trade will never be executed.
Best Brokerages to Invest in Apple
Deposit $100 and Get $10 from eToro USA LLC
- Sign up for an eToro account
- Deposit $100
J.P. Morgan Self-Directed Investing - Get Up to $700
- Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.
- $700 when you fund with $250,000 or more
- $325 when you fund with $100,000-$249,999
- $150 when you fund with $25,000-$99,999
- $50 when you fund with $5,000-$24,999
- Get unlimited commission-free online stock, ETF, fixed income, and options trades when you open an account.
- $0 Online Commission trades
- Choose an account that's right for you: General Investing, Traditional IRA or Roth IRA.
- Access our secure, easy-to-use trading experience online or through the Chase Mobile® app.
- Our powerful tools and resources are built to help you take control of your investments.
INVESTMENT AND INSURANCE PRODUCTS ARE:
Pros and Cons of Buying Apple Stock
Pros:
- Enormous cash on hand of $55.872 billion (March 2023)
- Increasing annual dividend payouts since 2012
- Constantly expanding products and services to consumers
Cons:
- Growing competition from Samsung, Google, and Huawei
- iPhone sales declining in the global market share
Why Invest in Apple?
Apple currently holds the top spot in the smartphone market with a 24.1% market share. Despite challenging economic conditions and supply constraints, their Services business generated record revenue of $20.8 billion. The company's total revenue also saw growth on a constant currency basis.
- Increased operating cash flow of $28.6 billion
- Increased shareholder return of over $23 billion
- Additional $90 billion for share repurchases
- Cash dividend of $0.24 per share, 4% increase
- Revenue of $94.8 billion, a 3% decrease YoY
If you are not yet convinced, read on to learn more on the current performance of Apple stock.
What is Apple's valuation?
Apple stock is currently the largest and most valuable company worldwide. Its current market cap is $2729.79B, it increased by 5.89% just in one year. Also, its price-to-earnings ratio is 29.47.
Based on these numbers, Apple is considered a "growth stock" by investors and experts. This is often seen as a positive sign for potential investors, indicating promising growth and a potentially good investment opportunity.
To better understand, here are two common ways investors measure a company's value.
- Market Capitalization (Market Value)
Market capitalization (Market value) is how we measure the size of a public company. We do this by multiplying the current stock price by the number of shares outstanding. - Price to Earnings Ratio (P/E Ratio)
The P/E ratio shows if a company is undervalued or losing money. Low but positive means high earnings, while high negative means heavy losses.
- Companies with a P/E ratio above 30 or in the negative range are often labeled as "growth stocks." This suggests that investors predict future growth or profitability.
- While positive P/E ratio below 10 are generally regarded as "value stocks," indicating that the company is already profitable and unlikely to see significant growth in the future.
Next, let's see how all this information fits your investment portfolio.
Is Apple Stock Right for You?
When deciding whether to buy a stock, like Apple, avoid deciding solely based on the current price. Take into account your investment goals and risk tolerance to determine if it aligns with your investing strategy.
Are you looking for passive income through dividends? Apple has always paid dividends, except from 1996-2012. Apple has been paying its shareholders a dividend of $0.24 per share per quarter since May 2023. Additionally, its dividend has consistently increased every quarter according to its history.
Another important factor is determining how much risk you can handle. Remember that stocks can be unpredictable, with some sectors being more volatile than others.
Even though Apple is a reputable company, it still carries the risk of declining. Some experts warn of a potential FAANG bubble (Facebook, Apple, Amazon, Apple, and Google) burst.
To minimize risks, investing for the long term is recommended to weather any market downturns. If you're uncertain about investing in Apple stock, there are other options to consider in the technology sector. Here are the leading competitors of Apple.
Alternatives to Apple Stock
The tech industry is one of the fastest-growing sectors. Five of the top 10 largest companies are from the tech industry. So here are some excellent alternatives to Apple stock.
- Microsoft
Microsoft (NASDAQ: MSFT) is a well-known company that has consistently ranked among the largest companies in the world due to the widespread use of the Windows operating system.Statcounter data shows that over 70% of computers use Windows. Besides Windows, Microsoft offers a diverse selection of products and services, such as its Office Suite software, Azure cloud platform, and Xbox video game consoles, contributing to its success.
Although it briefly surpassed Apple with the largest market cap in 2021, Apple regained the top spot a month later.
Microsoft Q1-2023 Highlight: [2]- Market cap: $2294.96B
- Revenue: $52.9 billion, a 7% increase
- Net income: $18.3 billion
- Operating income: $22.4 billion, a 10% increase
- Year founded: 1975
- Market cap: $2294.96B
- Alphabet
Alphabet (NASDAQ:GOOGL) is the holding company formed after Google's restructuring in 2015. While Google is primarily recognized as a search engine, it has numerous popular products such as Gmail, YouTube, Waze and Maps navigation apps, and Pixel smartphones.Alphabet Q1-2023 Highlight:[3]- Market cap:$1.435 T
- Revenue: $69.8 billion, a 3% increase YoY
- Net income:over $15 billion
- Operating income: $17.4 billion, a 12.39% decline YoY
- Year founded:1998 (Google), 2015 (Alphabet)
- Market cap:$1.435 T
Bottom Line
Before investing in a company's stocks, it's always a good idea to do some research to make sure it fits in with've found a good option, the next step is to pick a brokerage that suits your needs.
Keep an eye on your investments and their performance so you can make informed decisions about adjusting your portfolio.
References
- ^ Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS , Retrieved 05/11/2023
- ^ Microsoft. Microsoft Cloud strength drives third quarter results , Retrieved 05/12/2012
- ^ ABC.XYZ. Alphabet Announces First Quarter 2023 Results, Retrieved 05/12/2012
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